Hated Labour pub rules ‘under review’ as thousands could close in UK this year | Politics | News
Thousands of pubs face closure unless the Labor government overhauls the controversial business rates system, industry leaders have warned. The British Beer and Pub Association (BBPA) says around 2,300 pubs could close by 2029-30 without meaningful reform, dealing a “devastating blow to communities, jobs and local economies” across the country.
Despite recent concessions, including a special rate cut for pubs of around £2,000 per venue and a two-year freeze from 2027-28, the industry argues the underlying valuation method remains fundamentally unfair. Unlike most businesses, which are rated based on open market rents, pubs are rated based on their complex financial situation.
The government’s support package, announced in January, is expected to deliver savings of £73.6 million for 2026-27 and reduce the average pub bill to £11,459. The two-year freeze is expected to provide additional relief of £273 million.
Warning that the measures only provide a temporary respite, BBPA Chief Executive Emma McClarkin said: “Whilst these measures reduce the immediate burden, they do not solve the long-term problem that traps pubs in a cycle of uncertainty and shocking escalations.
“Our analysis shows that if the underlying methodology is left unchanged we could see around 2,300 pubs close in 2029-30.
“We cannot emphasize enough what a devastating blow this will be to communities, jobs and local economies across the country. Getting the methodology right is not just an administrative exercise. This will have real-world consequences for thousands of pubs, workers and the communities they serve.”
Nick Mackenzie, Chief Executive of Greene King, whose firm operates 2,600 sites, added: “The upcoming Treasury review must correct the fundamental injustice in the business rates system that disproportionately penalizes pubs.
“Until these meaningful changes are implemented, pubs across the country will continue to be overwhelmed by regulatory costs and will be less able to invest and grow.”
The warnings highlight continued pressure on the pub trade due to rising costs and post-pandemic challenges. Telegram‘s Save Our Pubs campaign has previously highlighted how rising business rates are threatening the survival of many sites.
The Treasury has confirmed it is reviewing how pubs are assessed against business rates.
A Treasury spokesman said: “We have a sound economic plan, supporting hospitality this summer by reducing VAT on family events and children’s meals, reforming business rates, extending World Cup opening hours and taking action on the cost of living to stimulate the sector.”
